The Market Report: October 2024

A New Season

This past month the Fed reduced rates by half a point, double what most analysts predicted. The significant reduction likely signals a new era of declining rates. Though this current reduction is likely to have a greater impact on consumer sentiment than mortgage interest rates, as we’ve seen rates declining significantly over the past four months, with lenders anticipating a Fed move. Several lenders were already offering 30-year products that dipped below 6%.

Our New York City real estate market saw property inventory increase significantly across the board this past month, roughly 15% in Manhattan and 11% in Brooklyn. We saw a similar increase last year in October, and inventory is only slightly down year-over-year. We anticipate the back-to-school mentality that often motivates would-be sellers to finally list their properties to trend through this upcoming month. We continue to speak with many sellers who are motivated to come to market this fall, hopefully releasing some pent-up inventory to offer buyers more options.

We are seeing more would-be buyers consider the prospect of now selling their existing properties that they’ve held longer than desired due to the elevated mortgage interest rate environment that we’ve had for the past four years. For those pent-up buyers who are considering, now is the time to explore options.

Timing is never perfect, and those buyers won’t be alone – both in competition for their sale and competition for the purchase. More competitors are going to consider jumping in the pool. For timing, preparation now means getting a property on the market likely early winter or after the new year. And getting into contract or already closing will be essential for most of these buyers to be competitive when offering on a

purchase.

Connect with an experienced real estate agent for the sale now to prepare, and also begin discussions with them on what options exist for purchasing – neighborhoods, price range and type – to begin understanding what to search for. Also explore lending options. Lenders have been offering new and innovative products to compete in a high-interest rate environment. Rates are very likely to remain stable or decline. So, take advantage of the options. Have your agent introduce you to a handful of lenders to find a product that fits your particular needs and offers the most attractive terms.